TMI Blog2017 (11) TMI 2040X X X X Extracts X X X X X X X X Extracts X X X X ..... the same is hereby deleted. Penalty on deemed dividend - Following the consistent position taken by the Coordinate Benches in assessee s group cases [ 2016 (4) TMI 71 - ITAT JAIPUR] and [ 2016 (6) TMI 1475 - ITAT JAIPUR] where the penalty levied u/s 271(1)(c) has been deleted business transaction is not covered under section 2(22)(e) the penalty levied in the instant case is hereby deleted as there are no changes in the facts and circumstances of the case. Appeal of the assessee is allowed. - SHRI VIJAY PAL RAO, JM SHRI VIKRAM SINGH YADAV, AM For the Assessee : Shri Rajeev Sogani Shri Rohan Sogani (CA) For the Revenue : Shri P.P.Meena (JCIT) ORDER PER:SHRI VIKRAM SINGH YADAV, A.M . This i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leted in quantum proceedings. Regarding levy of penalty on deemed dividend of Rs. 2,00,000, the ld. AR reiterated the submissions made before the ld. CIT(A). It was further submitted that under identical set of facts wherein additions u/s 2(22)(e) were made in the other group entities and individuals, penalty levied u/s 2(22)(e) was deleted by the Hon ble Jaipur Bench of the Tribunal in following matters. It was accordingly submitted that penalty levied on deemed dividend may be deleted. Name of the Assessee ITA No. Assessment year Date of order Trimurty Buildcon (P) Ltd. 661/JP/2011 2002-03 12- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Roshni Mishra. We find that the case of the assessee is covered by the CBDT Circular No. 1916 dated 11.05.1994 whereby the CBDT had issued guidelines stating that In the case of a person not assessed to wealth-tax gold jewellery and ornaments to the extent of 500 gms per married lady, 250 gms per unmarried lady and 100 gms per male member of the family need not be seized. Therefore, following the above guidelines and also judgment of Hon ble Jurisdictional High Court in the case of Satya Narain Patni (2014) 46 taxmann.com 440 (Raj.), we direct the AO to allow gold jewellery weighing 250 gms [(500 gms- 250 gms allowed by CIT (A)] in the hands of Roshni Mishra (daughter-in-law), 250 gms. each in the hands of Aditi Mishra and Aanchal Mish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The AO is directed to allow the interest expenses. The grounds of the assessee are allowed. 5. In light of above, where the additions which were the subject matter for levy of penalty has been deleted, there is no basis for levy of penalty and hence, the same is hereby deleted. 6. Regarding the levy of penalty on deemed dividend, it was held by the AO that M/s Trimurty Builders Pvt. Ltd. in which the assessee was a share holder of over 10% shares booked its profit on the last working day of the F.Y 31.3.2007 it has shown profit of Rs. 5,35,787/- out of which Rs. 2 lakh each was advanced to the appellant and to another sister concern. Thus this advance was treated as income by way of the deemed dividend u/s 2(22)(e) which was acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese transactions were made for the purpose of business and commercial expediency, is bonafide. Penalty imposed by the AO and confirmed by ld. CIT(A) are not justified. Accordingly we delete the penalty in all the cases. 7. In ITA No. 476 477/JP/14 vide its order dated 29.06.2016, the Coordinate Bench under identical set of facts has followed the above decision and has deleted the penalty on addition on account of deemed dividend and the relevant findings are as under: 2.3 We have heard the rival contentions and perused the material available on record. Undisputedly the facts pattern in the impugned matters are similar to the facts before Co-ordinate Bench in respect of assessee s group companies wherein the penalty on addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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